In response to slowing deposit growth, two major public sector banks — Canara Bank and Union Bank of India — have launched innovative deposit schemes to attract high-value customers and improve resource mobilization. These new products, announced on May 13, 2025, offer a mix of financial benefits, lifestyle perks, and health insurance coverage, demonstrating a strategic shift towards customer-centric banking solutions.
Why in News?
Canara Bank and Union Bank of India launched special deposit schemes to counter the slowdown in deposit growth, which dropped to 10.3% in FY25 compared to 13.5% in FY24. These schemes are aimed at offering value-added services to customers, boosting deposit figures, and staying competitive in a tight financial environment.
Key Objectives
- Enhance deposit growth amid challenging financial conditions.
- Offer value-added services beyond traditional banking.
- Strengthen customer loyalty through personalized and bundled benefits.
- Attract high-value individual and senior citizen customers.
Canara Bank – TruEdge Product Highlights
- Name: Canara TruEdge (Current & Savings Account offering).
- Target: Enhanced customer segmentation with tailored financial solutions.
Features
- Charge waivers and concessions linked to Monthly Average Balance (MAB).
- Personalized support with a dedicated relationship manager.
- Purpose: Support operational and financial efficiency of clients.
Union Bank – Union Wellness Deposit Highlights
- Name: Union Wellness Deposit.
- Interest Rate: 6.75% p.a. for 375-day tenure.
- Eligibility: Resident individuals (18–75 years), individually or jointly.
- Insurance only for primary account holder in joint accounts.
- Deposit Range: ₹10 lakh to ₹3 crore.
Special Benefits
- Super Top-up Health Insurance with ₹5 lakh sum insured.
- Cashless hospitalisation facilities.
- RuPay Select Debit Card with lifestyle benefits.
- Senior Citizens: Extra 0.50% interest, making it 7.25%.
- Other Facilities: Premature closure and loan against deposit allowed.
Background & Market Context
- Deposit growth continues to be muted across public sector banks.
- Most PSBs project 9–11% deposit growth in FY26.
- Special schemes serve dual purposes: customer acquisition and resource mobilization.
- Targeting senior citizens and high-net-worth individuals becomes vital for profitability.
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